§ Mr. LansleyTo ask the Secretary of State for Health whether public dividend capital on the balance sheets of NHS hospital trusts is classified as debt. [159302]
§ Mr. Hutton[holding answer on 5 March 2005]: National Health Service trusts account for public dividend capital (PDC) as equity. PDC is a form of public sector financing which does not conform to the standard accounting definitions of equity and debt used in the private sector. It is more akin to an equity stake than a loan, as it is remunerated by dividend rather than fixed or variable interest.